9 FORCES SHAPING CLOUD MANAGEMENT IN 2019 - Accenture
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CONTENTS INTRODUCTION FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY FORCE #4: MULTI IS THE NEW CLOUD REALITY FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE FORCE #6: NATIVE VS. NICHE FORCE #7: SECURE FROM START FORCE #8: CLOUD’S PACE OF INNOVATION DRIVES FOMO (FEAR OF MISSING OUT) FORCE #9: GAME OVER. LET THE GAMES BEGIN. COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 2
THE RATE AND PACE OF CLOUD ADOPTION IS ACCELERATING ACROSS REGIONS AND INDUSTRIES. WE SEE SPEED. AND COMPLEXITY. AND GREATER RISK. Making the right decision is a make-or-break proposition for most organizations, That’s why we’ve gathered our leading cloud experts to compile this eBook. Our but with expanding choice comes greater risk of failure. Those confused about goal was to highlight how recent trends in cloud computing impact the job of the cloud computing and where it’s going aren’t alone. CIO in guiding a company’s successful journey. The eBook is based on not only our extensive work helping companies migrate and run their businesses in the cloud, but also on Accenture’s own transformation into a cloud-first business. COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 3
FORCE #1 FORCE #2 FORCE #3 CAPEX PRIVATE CLOUD CLOUD TIPPING INVESTMENTS FINDS ITS POINT FORCES SECURE THE SPECIALTY IT TO RUN HYPER 3 WINNERS DIFFERENTLY There’s much uncertainty in the market about what Together, Amazon, Microsoft and Google–the defines a true private cloud—and when a company Many enterprises are now moving toward a tipping Hyper 3–have invested more than $30 billion in might need one. Successful private clouds are now point, where a substantial amount of their workload capital expense just this past year to build and defined around solving a specific use case, such as is in the public cloud. Unfortunately, most IT scale their global cloud footprint. This substantial conforming to data sovereignty needs or supporting organizations mistakenly treat the new estate as investment is not just for building infrastructure edge use cases. If the goal is agility, cost reduction just another data center and don’t see the need to and facilities. The Hyper 3 are also investing heavily or speed, choices skew public. If, for whatever shift their operating model to the realities of cloud in innovative new services and capabilities that reason, an organization feels on-premises better management. In actuality, operating in the cloud pale in comparison to legacy approaches—leaving fits its needs, options exist but require additional drives a need for a new cloud-based operating companies scrambling to keep up. Alignment of considerations—and all decisions have time, risk, cost model, and, along with it, people with new skills and enterprise IT investment with any or all of the and talent ramifications. new roles. Hyper 3 means an organization will remain competitive in the coming years, managing down technical debt and decoupling from the past. INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 4
FORCE #4 FORCE #5 FORCE #6 MULTI IS THE NEW CLOUD NATIVE VS. NICHE CLOUD REALITY MANAGEMENT EMERGES AS Organizations are faced with the tricky decisions The steady adoption of cloud services has created THE NEXT BIG of how, when and where to use niche tools versus a complex computing environment for many companies. Some are in the position to plan for a CHALLENGE native tools that may sit on top of native providers. Teams must understand where the capabilities of multi-cloud environment, while a significant number native consoles start and stop, and derive a strategy In the messy real world of hybrid and multi-cloud of others simply find themselves using multiple and plan for how their organization will function environments, cloud management has become vendors without proper planning, governance or across multiple clouds. Organizations also need to very complicated. Each cloud provider may offer a controls. From a cloud management perspective, understand their comfort zone and risk profile— dashboard to manage its environment, but achieving this new reality makes it difficult for organizations recognizing that many niche providers likely won’t a unified view across a hybrid IT and public cloud to publish policy, manage costs, maintain security, be around for the long haul. estate is no small feat. No two cloud providers ensure compliance or even create a single view expose the same billing or management APIs, showing all cloud resources. and no single tool can handle all of an enterprise’s management needs. INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 5
FORCE #7 FORCE #8 FORCE #9 SECURE CLOUD’S PACE GAME OVER. FROM START OF INNOVATION LET THE DRIVES FEAR OF GAMES BEGIN. Most CIOs have come to realize public clouds are MISSING OUT more secure than their own facilities. The critical difference, though, is that threat vectors in the (FOMO) We’re still early in the maturation cycle of cloud. Niche vendors are many but are fodder for cloud have changed. The actions of individuals acquisition. When that happens, the game changes. The rate and pace of innovation in the public can now have a dramatic and immediate impact on A tool that was once multi-cloud aligned may cloud are unprecedented, and skilled people in security and place a significant burden on the CIO to become isolated or pivot in some new direction. And the organization don’t want to miss out and will be maintain a compliant environment. Building security as the Hyper 3 consolidate, competitive intensity eager to try every new feature. But the enterprise into its cloud infrastructure from the start is critical grows. The game is not constant. Organizations can’t enjoy the level of innovation coming from to a company’s ability to take advantage of the new that align with the Hyper 3 will benefit from greater each of the Hyper 3 if it needs to vet every new services cloud providers roll out each year while innovation at continually lower costs. But when service. Organizations need an agile policy to make minimizing potential threats and disruptions. betting on niche vendors to help them manage all new services available immediately, while creating discovery mechanisms and guard rails to or part of their multi-cloud presence, companies understand where, when and how people are need to be aware that the long-term viability of their using which services. investment is not guaranteed. INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 6
THE CLOUD CLEARLY IS FAST BECOMING AN INDISPENSABLE PART OF TODAY’S BUSINESS—BUT IT’S ALSO GETTING MORE COMPLEX AND DIFFICULT TO MANAGE AS COMPANIES’ CLOUD PRESENCE GROWS. Companies that understand how to use the cloud and get the most from it will continue to have a big advantage over those that don’t, and that gap will only widen over time. The fact is, multi-cloud is here to stay, and companies need a comprehensive approach across operating models, tooling and skills to manage risk and drive success. We hope this eBook offers some clarity to organizations and their leaders about current market trends that are driving change and innovation in the enterprise—both today and beyond—and, even more important, provides some useful insights to consider when planning for the future. INTRODUCTION: CLOUD ADOPTION IS ACCELERATING COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 7
FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS By Michael Liebow, Global Managing Director, Accenture Cloud Over the past five years, there’s been an undeniable surge in cloud usage, with companies migrating a growing number of their workloads to the cloud. One study has found that 93 percent of companies have moved at least some of their processes to the cloud, and 56 percent have moved or expect to move all of them.1 We expect this momentum to only accelerate. But, there are still many companies that are reluctant to embrace the cloud at scale and, as a result, are in danger of being left behind. FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 8
Remember in Alice in Wonderland, when the White Rabbit looked at his watch and proclaimed, “I’m late, I’m late,” followed by, “The hurrier I go, the behinder I get?” In an odd sort of way, these quotes describe the state of reluctant companies’ move to the cloud. THE PACE OF CLOUD-RELATED CHANGE AND INNOVATION IS REMARKABLE AND ONLY ACCELERATING. According to one study, operator and vendor revenues for 2018 across seven key cloud services and infrastructure market segments exceeded $250 billion, representing 32 percent growth over the previous year.2 New cloud vendors continually arrive on the scene, and new cloud services and solutions are introduced by the thousands every year. Yet companies that continue to put off a large-scale move to the cloud now have a big problem. The longer they wait, the further they fall behind competitors that are embracing the cloud and its massive potential. WHY ARE THEY HESITATING? Myriad factors are at play. There’s the technical debt these companies have been saddled with for years that’s difficult to write off. There’s the lack of people with strong cloud skills. And then there’s the age-old obstacle of reluctance to change and fear of risk: Companies are comfortable with what and whom they know. Think about it. The very skills, processes, tools and vendors that an organization knows, and perhaps loves (or loves to hate), are the very same legacy elements preventing these companies from moving on to something new: the cloud. These are all valid issues. But they shouldn’t be an excuse for not moving to the cloud. In fact, despite the pockets of legacy supporters within these companies, moving an IT estate to the cloud is no longer a choice. It’s a do-or-die imperative simply to remain competitive, let alone to keep pace with business needs. FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 9
Then the question becomes, which cloud provider should a company choose? It’s not an easy decision. THREE CHOICES TO REDUCE UNCERTAINTY AND RISK So, which one should a company pick? In reality, which of the Hyper 3 a company chooses for its cloud transformation isn’t the question—just as long as the company The cloud provider market is dominated by three vendors: Amazon, Microsoft and actually does it; taking the step is what matters most. Each company offers access to Google—or, as the market calls them, the Hyper 3. Each of these behemoths is unprecedented innovation and scale, and the stability and certainty that comes with investing about $1 billion a month in capital expenditure (CapEx) to build and scale them. That said, a few factors may swing the decision in favor of one over the others. its global footprint.3 Alibaba is a distant fourth, although one could argue that its low costs effectively narrow the gap. The others that follow are smaller or more niche For instance, if a company is concerned about vendor risk or pace of innovation, cloud providers that will never be big players simply because they aren’t making the Amazon—with a commanding 70 percent share and history of innovation—is the same level of investment the Hyper 3 are. clear choice. However, a company in an industry like retailing may perceive a vote for AWS as aiding and abetting a competitor, which might narrow the choice. Perhaps The extent of the Hyper 3’s investment enables the group to develop and roll out a company already has strong ties to Microsoft in the form of prior investments new capabilities and services at a pace no other provider—or, for that matter, no in products like Office 365 and SQL Server. Or, maybe a company is looking to corporate IT organization—could match (Amazon alone launched 1,700 new services create new, data-rich workloads at a lower cost but with attractive performance. In in the past year). This means the Hyper 3 are setting, and continually raising, the this case, Google’s technology leadership and simpler cost model might be most bar for what the cloud can do—and that’s a win for any company that wants as little attractive. Google’s technology extends to its robust network, which might sway a uncertainty and risk, and as much potential upside, as possible. company looking for near-zero latency in its applications. FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 10
THE POINT IS, when it comes to stability, security and innovation, all three options hit the mark. Best practices suggest that an organization qualify at least two vendors to further moderate risk and comply with internal policies. FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 11
FOCUS ON OUTCOMES AND EXPERIMENTATION Freedom to experiment is critical to finding innovative To truly benefit from its choice—i.e., capitalize on all of the innovation coming from the Hyper 3—a company needs to make sure its cloud strategy is aligned with a specific business outcome. The objective may be to cut technology costs by a third, ways to use the Hyper 3’s accelerate innovation or penetrate new markets—whatever the goal, it and its related services to add business value—and to staying ahead metrics should be explicitly tied to the use of the cloud. A company also needs to give users the freedom to experiment. After all, what’s of competitors. There’s little value in using these the use of all of the new services and capabilities the Hyper 3 provide if a company doesn’t take the time to figure out how to use them and where they could generate significant business benefits? (We discuss this in more detail in Force #8.) providers if you aren’t using Consuming all of this new functionality means moving away from the traditional Information Technology Infrastructure Library (ITIL) and six-month approval cycles— the new services. taking months to vet a new capability before allowing users access won’t cut it in the cloud. Instead, a company needs policies that clearly govern the use of new features and functions in a way that gives users the latitude to tinker while also enabling them to monitor what they’re doing. For instance, a company could allow users to test new functions as they’re available but restrict how and when the functions move into production. Or, a company could narrow down the new services to only those relevant to that particular company, thereby avoiding spending manpower and resources on things that don’t matter to the business. FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 12
IT’S NOW Despite all of the promise the cloud offers, some companies still stubbornly stick with the status quo. That could be a costly mistake in more ways than one. If these TIME FOR companies insist on staying with legacy technology providers, they’ll only continue to add to their technical debt—all while the Hyper 3 steadily drive the cost of compute, storage and network toward zero. EVERYONE At the end of the day, the choice comes down to disrupting the competition and an industry, or being disrupted by a clever upstart. It’s entirely a company’s call. Now is TO MOVE the time for all companies to choose, and we hope, pick the former. Every company needs to avoid continuing down the legacy rabbit hole by knowing where to go and helping the rest of the organization to get on board with whichever of the Hyper 3 it thinks best suits the them. Opportunity awaits, but only for those that move forward with speed and focus. FORCE #1: CAPEX INVESTMENTS SECURE THE HYPER 3 WINNERS COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 13
FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY Michael Rutherford, Cloud Product Management Sr. Manager, Accenture Cloud By now, companies have a pretty good handle on what public cloud is. And on-premise data centers certainly need no introduction. But between those two ends of the computing spectrum lies a grey area where confusion reigns: the private cloud. FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 14
WHAT IS A PRIVATE CLOUD? At a high level, a private cloud is defined as computing services offered over a network—either a private, internal one or the internet—that often incorporate some type of on-premises component, and that are dedicated to only select users (typically, a single client or company). But there’s a lot of room for ambiguity in this definition, and that’s where companies get hung up. The fact is, it’s quite easy to misunderstand the term “private cloud.” Private cloud is not just virtualized hosting, nor is it a collection of static virtual machines. To qualify as a private cloud, the virtual hosting infrastructure needs to be dynamic. It provides a standard service catalog through which clients order and consume capacity on an as-needed basis, leverages a governance structure to control roles and responsibilities, manages a constrained capacity pool for dynamic workloads and bills consumers according to their usage. FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 15
WHEN DOES PRIVATE CLOUD MAKE SENSE? significant latency and connectivity requirements. In fact, private cloud is starting Despite the growing popularity of the public cloud, private clouds still have a place to play a bigger role in edge computing applications, where data processing and in many organizations. In fact, although public cloud spending is still growing more analysis are increasingly being pushed out to where data is collected. For instance: rapidly, the $100 billion spent in 2018 on cloud hardware and software was about A cruise ship can connect to the internet when in its home port to download evenly split between public and private clouds.4 software updates and passenger manifests from the public cloud, then run The public cloud excels at running transient workloads (e.g., scheduled production disconnected for its seven-day cruise. With a private cloud aboard the ship, the runs and ad hoc development and testing), seasonal workloads (e.g., course crew can run analytics on this data and other data captured while at sea to get more registrations at schools or e-commerce surges for retailers during the holidays), and insights into guests’ preferences and tailor services accordingly during the journey. decoupled workloads leveraging as-a-service functions from cloud providers. The A mineral company’s mine in a remote area can’t run public cloud applications key is to understand where it’s most effective while acknowledging its limitations. reliably because of high latency, low bandwidth and poor connectivity. With a For instance, if a company’s goals are agility, cost and speed, public is the way to private cloud on site, the company could apply analytics and artificial intelligence go. On the other hand, a private cloud is the better option when a high level of to the data being generated by connected devices in the mine to help supervisors customization is needed to meet an application owner’s requirements. It’s also often continually improve the performance of assets and anticipate and mitigate potential the right choice where there are compliance or data sovereignty concerns. The safety risks. public cloud’s “anytime, anywhere” access can conflict with individual countries’ laws and regulations governing how and where data is managed and used. So, for a large global company operating in dozens of countries, each having its own data protection rules, compliance may be easier with a private cloud for each location. Private clouds also can make sense in cases of heightened data security concerns— for instance, among such companies as financial services, healthcare or government organizations, which handle extremely sensitive personal and other highly regulated data. However, such applications are becoming less prevalent, as the growing strength and sophistication of the public cloud’s security has made these types of organizations increasingly open to considering the public cloud. Perhaps the biggest argument in favor of a private cloud is its ability to help meet FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 16
TWO THINGS TO KEEP IN MIND WHEN CONSIDERING A The fact is, the use cases for private and public clouds are very different, so PRIVATE CLOUD companies should consider their long-term hosting objectives before pursuing a As the hosting landscape continues to evolve, a hybrid approach to cloud will still two-stage migration strategy. Private clouds are a viable hosting option if they’re make sense—meaning a private cloud likely will be part of most companies’ overall tailored to a specific application suite or owner and address a business requirement computing landscape. That’s why, when considering a private cloud, companies such as data sovereignty or remote hosting. In this case, a company should focus should keep two key points in mind. on optimizing that platform to deliver the application as efficiently as possible to justify the investment. If a company is really thinking about a private cloud that runs First, it’s critical for all involved to correctly identify if the workloads in question truly everything in its data center, it should target public cloud right out of the gate to need private cloud functionality or if they are better suited for the public cloud take advantage of the cost, scale and performance benefits. or even virtualized hosting. Implementing and running private clouds generates overhead costs that will just become sunk expenditures if the company doesn’t A private cloud undoubtedly end up using the private cloud functionality. While companies continue to toss all can deliver significant business benefits. manner of on-premise computing under the private cloud moniker, companies need to understand that private clouds aren’t free to build, and they require an ownership structure to create and maintain standards and services. Companies also need to ensure they will actually require the on-premise agility of a private cloud. If they But it can only do so if a don’t, they probably have a virtualized hosting platform. If they do want agility but company understands up don’t want to manage the services and standards, then a public cloud, a third-party managed private cloud or a community cloud may be a better match. front what private cloud can and can’t do and the role it’s Second, a company must be aware that a private cloud isn’t a quicker, easier and best equipped to play as part of the company’s larger cloud lower-cost route to the public cloud. Moving to a private cloud requires application modernization to use the cloud assets effectively. If a company then takes the next step to the public cloud, it will need to complete a second optimization of the and computing strategy. application to operate in the public cloud economic paradigm, which is different from that of a private cloud. FORCE #2: PRIVATE CLOUD FINDS ITS SPECIALTY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 17
FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY By Tristan Morel L’Horset, Managing Director, North America Intelligent Cloud & Infrastructure Sales Lead A big part of the significant increase in cloud usage in the past five years has been the advent of platform-as-a-service (PaaS) solutions and other components, which have encouraged companies to substantially ramp up their cloud consumption. PaaS, in particular, has been a real driving force, as it allows companies to develop, run and manage applications without having to build and maintain the infrastructure to do so. In fact, because of these innovations, most companies are now rapidly approaching a true tipping point in their cloud presence that’s forcing them to look more closely at their requirements around roles, policy, security, data and network, as well as more broadly at how they use the cloud and manage the associated costs. FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 18
To support—and THE NEED TO “RUN DIFFERENTLY” The reality is, with so much of their business now in the cloud, many companies truly capitalize are beginning to recognize that they need to run their IT operations differently than when they were primarily an on-premises, legacy data center business. The on—their growing cloud is far too dynamic in nature, and the pace of innovations being introduced much too quick, for a traditional approach to IT to effectively handle. Not cloud estate, running differently can have a big impact on both the top and bottom lines. TOP- AND BOTTOM-LINE CHALLENGES companies need a For example, buying capacity and new services from cloud providers is an ongoing process, which is much different from the periodic purchase of assets new IT operating that characterize the on-premises legacy world. Instead of a one-time, closely controlled activity done every few years, cloud buying happens continually— model, with and easily. If they’re not careful, companies can see spending spiral out of control. With the amount that many companies spend on the cloud increasing new skills and steadily—more than $1.3 trillion in IT spending will be affected in some way by the cloud by 2022, according to Gartner4—failure to properly manage, optimize roles, as well as and consume cloud services will have a negative effect on the bottom line—to the tune of millions of dollars for large organizations. new processes, The top line also takes a significant hit if a company doesn’t run differently. A company that enable the company to run that treats the cloud as just another data center—building and deploying applications in the same methodical and time-consuming way—will never be able to capitalize on the differently. Hyper 3’s innovations to transform its business and give its customers what they want. And it’ll end up falling further and further behind competitors that can do it right. In fact, the economic impact of opportunities lost due to failure to harness the cloud’s innovation far exceeds the bottom-line impact driven by inferior cost management. FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 19
A BIG NEED FOR NEW SKILLS PROCESSES MUST CHANGE Skills are arguably where the biggest changes are needed and are the stiffest Changes in ITIL processes are also needed. While an official “bible” of cloud challenge to overcome. For example, in the old legacy days, companies had processes has yet to be written, there’s no doubt the importance of each ITIL specialists in storage, network, backup and operating systems. As the cloud process has fundamentally shifted—with the biggest impacts seen in incident emerged, organizations made a few cloud-savvy engineers responsible for management, problem management, and change management. managing cloud services. This arrangement worked fine while companies’ cloud presence was limited. Incident management has become dramatically less critical with the cloud. If there’s an incident with a cloud component, we no longer have to fix it. We just change But now, with so much of their business in the cloud and the number of platform over to a new virtual machine (VM), workflow or container because components are services exploding, a small DevOps team supporting the cloud is no longer so commoditized and easy to ramp up. In other words, in the world of automation, sufficient. Companies need a different, and larger, set of specialists in each of the incident management becomes almost a non-event. But the importance of problem three cloud PaaS components: container platforms, application platforms, and management has grown. Even though it’s easy to move on from an issue, a company function platforms. And they need to organize these new specialists in ways that fuel still wants to understand why the problem occurred to prevent it from happening collaboration, innovation, speed, and agility—for example, in a center of excellence. again. That’s crucial to making the company’s cloud presence stable. New skills will mean nothing if they’re simply tossed in with a legacy IT organization that doesn’t truly understand how to take advantage of the cloud. Change management arguably isn’t any more or less important, but it’s assumed a different dimension. Because developers want to be more agile and able to embed a new feature in real time, the environment must be architected correctly from the start so developers’ actions don’t have unintended (and unwelcome) consequences. Thus, change management has morphed from, “I must control the change and its impact” to “I must architect my application and my ecosystem to enable developers to easily introduce new capabilities,” which is key to capitalizing on the Hyper 3’s innovations. FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 20
BE A A cloud-first business—which many companies are on the verge of becoming— bears little resemblance to one driven by on-premises data centers, so CLOUD- companies shouldn’t run their cloud estate the same way they’ve always handled their legacy architecture. As companies reach the tipping point in the amount of their business that’s in the cloud, they need to think past the short- FIRST term, immediate cost savings the cloud can provide to consider what it really means to run in the cloud. Crucially, that includes understanding what they need to do differently, both now and over the long term, to fully benefit from BUSINESS and keep pace with it. FORCE #3: CLOUD TIPPING POINT FORCES IT TO RUN DIFFERENTLY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 21
FORCE #4: MULTI IS THE NEW CLOUD REALITY By Andrew Wilson, CIO, Accenture HOW MANY CLOUD PROVIDERS IS THE RIGHT NUMBER FOR YOUR ENTERPRISE? As companies move more of their business to the cloud, many ask this question and conclude it’s more than one. Indeed, according to one study, seven in 10 companies expect to be operating a multi-cloud environment by 2019.5 This is not a fixed answer for all, as processing requirements vary hugely across industries and enterprises. Factors like cost, performance, degree of global operations, concentration risk, hybrid and scale can all influence this decision. The advantages of a second provider may be the reality for your company. At Accenture, we chose to work with a small number of cloud providers for our own workloads to help prove out multi-cloud operations, to balance risk across the ecosystem and to help compare and contrast cloud service providers to inform our work with our clients. FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 22
HOW DOES A COMPANY CAPITALIZE ON THE BENEFITS The decision to OF MULTI-CLOUD WHILE MINIMIZING THE COMPLEXITY IT INTRODUCES? select beyond or In Accenture’s experience—both with the 94%+ of our own business in the cloud and with our clients—the key is to ensure that the company’s ability to manage expand from a cloud usage, control costs, set policy and ensure compliance is universal, not provider-specific. single provider Managing usage and cost is extremely important, especially in a multi-cloud brings complexity. environment. Providers’ flexible-charge models make it difficult to predict what costs a company will incur and open up vast potential to blow past established budgets. Furthermore, with millions of line items on a single invoice, determining who bought what, and why, is far from easy. Security It’s hard enough to manage multiple accounts and environments in one cloud and compliance, of course, are also critical and become even more important provider—just look at the lines of billing you get every month. Doing it across (and much more difficult) when more than one cloud vendor is involved. And two or three cloud providers adds to the challenge. having the right policy in place that covers multiple providers is vital to tracking the resources the company has deployed to ensure they’re compliant and Consider, for example, a large global company with a significant portion of its configured correctly. business in the cloud with a single provider. In just one part of the enterprise, it could have a dozen or more accounts covering different stages of the development life cycle. And for each of those accounts, the company must ensure its environments aren’t vulnerable to unauthorized access or use, manage compliance and keep a handle on costs. That can be daunting. Add a second or third provider to the mix, and the challenge increases exponentially. FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 23
GET THE RIGHT TOOLS HOW DOES A COMPANY ACCOMPLISH ITS GOALS ACROSS PROVIDERS, WHEN EACH PROVIDER’S TOOLS ONLY APPLY TO ITS OWN ENVIRONMENT (AND GENERALLY AREN’T AS ROBUST AS THEY NEED TO BE)? THIS IS PRECISELY THE CHALLENGE A CLOUD MANAGEMENT PLATFORM IS DESIGNED TO ADDRESS: 1 2 3 A cloud management platform enables One of the most desired features of a cloud Another cloud management platform capability that’s organizations to manage their entire cloud estates management platform is cross-cloud tagging. especially important in a multi-cloud environment from a consolidated viewpoint (sometimes this is Tagging capabilities enable a company to tag assets is its ability to discover resources. Cloud makes it accomplished with a centralized control plane or a throughout its entire environment, regardless of easy for essentially anyone with a credit card to go multifaceted approach to managing cloud services). which or how many cloud providers it uses. Tagging, online and spin up a new resource. That’s a blessing Integrating with technology from the leading cloud when paired with analytics, gives a company visibility and a potential curse. Without being able to discover providers, it provides total visibility into all cloud into who’s using which cloud assets and shows how resources, it’s easy for the cloud equivalent of resources to enable companies to maintain security, those assets are being used and why. Such visibility “shadow IT” to proliferate. In our case, by provisioning control cost and ensure governance across multiple is critical for effectively managing total cloud spend, through the Accenture Cloud Platform from the accounts and providers. as well as deploying standard policies and controls start and tagging, we mitigate the proliferation of across these assets. shadow IT and can understand our assets from a scale perspective at all times. A cloud management platform enables a company to scan its entire cloud estate to find out what’s being added and assume control over it—which helps control costs, as well as ensure compliance and security. FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 24
WHEN IT COMES TO TOOLS, IT PRACTITIONERS HAVE SEVERAL OPTIONS. They can address it themselves or can purchase a tool, toolset or service like the Accenture Cloud Platform. Building one’s own tools will require ongoing maintenance, support, tracking and innovating, as well as a dedicated team. Buying vendor tools will most likely involve effort to piece them together. A service like Accenture Cloud Platform leapfrogs these options by providing solutions already pieced together for the enterprise. It brings together lessons learned and different approaches into one place, and can elevate an organization’s capabilities and enhance its ability to succeed in the cloud. FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 25
GET THE RIGHT PEOPLE PEOPLE ARE ALSO CRITICAL TO OPERATING A MULTI-CLOUD ENVIRONMENT EFFECTIVELY. As a company expands to multiple providers, some skills will apply across platforms. The move to multi-cloud will likely involve change management and retooling of But as it starts to consume the specific cloud-native capabilities of each provider, the skills. A company, for example, may need to translate its current provider’s approach company will have to invest in discrete skills in each of the platforms and consider to security to create an equivalent set of compliance and security processes across where to make those investments. multiple providers. If this is the case, people will have to learn an entirely new language and set of products and be comfortable doing so. And that will require Most companies won’t have the luxury of having discrete teams dedicated to each a concerted training and development effort and, potentially, hiring new people provider. Nor is it feasible: Most systems and workloads won’t operate in isolation but, with the requisite skills. At Accenture, we recognized we would need to retool our rather, will be at least partially integrated across providers in some way. Companies people’s skills, and supported an organic, hands-on transformation of skills along need to consider where to make skill investments to become fluent across providers with training programs. For many companies, moving to cloud will be the impetus to and where to be provider-specific—whether it’s security experts, cost analysts, business evolving IT skills and moving the organization into the new. people, or the subject matter expert creating and operating the infrastructure. Ultimately, some skills will be cross-platform and some platform-specific. Another option is to fill the talent gap with the help of a cloud managed services provider (MSP), which can bring expertise in all the Hyper 3 providers. An MSP can integrate and orchestrate the use of various cloud services, as well as help companies manage their consumption of cloud services across multiple clouds— often through the use of its own cloud management platforms. It also can sort through and assess the thousands of new services the Hyper 3 roll out every year to find those that provide the most benefit. FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 26
BE AGILE AND COMFORTABLE WITH CHANGE WITH THE INNOVATIONS FROM THE HYPER 3 Accenture was fortunate to have had the foresight to establish a governance structure CONTINUALLY ROLLING OUT, MOST COMPANIES WILL with a dedicated group that addresses changes and injects them into our organization EVENTUALLY FIND IT IMPOSSIBLE TO OPERATE IN A in an agile way without disruption. No doubt change is constant, and companies SINGLE PROVIDER ENVIRONMENT. WITH THE RIGHT should remain open to change down the road. Business requirements may exhaust TOOLS AND PEOPLE—AND THE RIGHT GOVERNANCE the capabilities of a provider, or other providers may roll out new services that are STRUCTURE—COMPANIES CAN MITIGATE THESE better aligned with the business. A decision made today may not pan out in six CHALLENGES AND REAP THE BENEFITS OF A MULTI- months. The key is to be flexible and ready to move when the time is right. CLOUD APPROACH. FORCE #4: MULTI IS THE NEW CLOUD REALITY COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 27
FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE By Sean Peterson, Cloud Management CoE Lead, Accenture Cloud As companies move more and more workloads to the cloud, they’re facing a reality check: in most cases, companies’ embrace of the cloud has now outpaced their ability to manage their increasingly large cloud estates. They don’t have the industrialized governance, security and other capabilities they need to handle the scale of their cloud presence, especially if they’re using more than one cloud provider (and most are). This means they’re likely not only failing to maximize what they can get from the cloud but also setting themselves up for potential cost overruns, inefficiencies and even security lapses that could make their business vulnerable to unwelcome surprises. Accenture understands this situation very well. By helping hundreds of companies migrate to and use the cloud, and by running so much of our business in the cloud, we have gained a unique perspective on what it takes to effectively manage a large-scale cloud estate. FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 28
WE LEARNED FROM OUR EXPERIENCE THAT FIVE THINGS ARE PARTICULARLY IMPORTANT. 1 2 GOVERNANCE AND MANAGEMENT CONTROLS COST ANALYTICS Effective cloud management and governance are basic requirements for any One of the biggest lessons we’ve learned is that if you don’t have visibility into how company. But for large enterprises with equally large cloud estates, there’s nothing you’re using the cloud, spending can get out of hand quickly. This is definitely a basic about it. The sheer scale and complexity of such companies’ cloud estates big issue we hear about from the companies we speak with today. They have so can make it extremely difficult to define who’s allowed to do what in the cloud and many accounts and subscriptions across the Hyper 3 that it’s difficult for them ensure that users comply. As their cloud presence grows, companies need to put in to understand if what they’re spending is the right amount. They don’t fully know place enterprise-level, cross-cloud policies that enable the different types of users— who’s spending what, so it’s not uncommon for them to find out they’re running from the business to the IT organization—to have the freedom and agility to take significantly over budget—but not have the oversight to know why. That’s why it’s advantage of the cloud’s innovations while maintaining necessary controls. critical for companies to have analytics in place that can give them the kind of intelligence they need to manage use—and, consequently, costs—more effectively. FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 29
3 5 BILLING A ROBUST CLOUD MANAGEMENT PLATFORM As companies with large cloud estates have certainly experienced, cloud billing is very A major challenge a company encounters as its cloud estate grows is simply keeping complicated. Tracking and attributing charges, making sure they’re accurate, resolving up with and integrating new technologies as they emerge. Accenture learned discrepancies and figuring out how to apply discounts can be difficult even with a early on that having a single platform that could serve as the glue among not only relatively small cloud estate. With really large estates spanning multiple providers and the three major cloud providers but also other related tools would be critical to involving many different areas of the business, it can become overwhelming: A single operating in the cloud effectively. bill from just one provider can have a million line items, each of which needs to be reconciled before the bill can be paid. Building the knowledge and acumen to handle By integrating with technology from the leading cloud providers, a cloud billing at this scale isn’t easy. It took Accenture two years to do it, and we continue to management platform enables a company to manage its entire cloud estate from hire more people with the right skill sets as our use of the cloud grows. a centralized control plane. It provides total visibility into all cloud resources, so a company can maintain security, control cost and ensure governance across multiple 4 accounts and providers. While theoretically it’s possible for a company to build its own cloud management platform, doing so is an extremely long, complex and costly process. Platforms available as a service are good alternatives to building one from scratch because they can be up and running quickly, with little effort and no upfront SECURITY investment. No one has to be reminded that security is a central part of cloud management. Seemingly every week we see in the media what can happen when security falls short. But it’s not enough to have strong security. In our experience, security also has to be active, not passive. In other words, as we discuss in more detail in Force #7, it needs to be baked into a company’s cloud infrastructure from the start so the organization doesn’t leave itself vulnerable to even simple mistakes—such as configuring a deployment incorrectly—that can result in unwanted exposure. A key part of active security is being able to scan and monitor the entire cloud estate—every few minutes, hourly or daily—to identify and address anomalies to maintain compliance. FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 30
ENLISTING A company that takes care of these five concerns can go a long way toward enhancing its ability to manage and optimize the use of its cloud estate. But THE HELP beyond these, one other, overarching learning we’ve identified can, perhaps, be the most impactful of all: enlisting the help of a qualified external provider that can do a lot of these things for you. The fact is, managing the cloud involves OF A a lot of work that, in the end, does nothing to differentiate a company in the marketplace. So why should CIOs devote precious skills and resources to dealing with these activities? QUALIFIED Frankly, they shouldn’t. There’s no reason to, say, deploy talented engineers to cloud management when those people could, instead, be developing new software that dramatically improves how the company interacts with customers. EXTERNAL External partners can do the work associated with cloud management, often more efficiently and less expensively. This can allow CIOs to focus their talent, tooling and technology on using the cloud’s innovations to transform how the PROVIDER company does business. With cloud adoption—and the accompanying complexity—only growing, CIOs have to think carefully about their cloud management requirements and how best to address them. With the right talent, tools, services, platform and partner, a company can continue to expand its use of the cloud to power the business while minimizing complexity and risk—much as Accenture has done in its own operations. FORCE #5: CLOUD MANAGEMENT EMERGES AS THE NEXT BIG CHALLENGE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 31
FORCE #6: NATIVE VS. NICHE By Catherine Gulsvig Wood, Cloud Product Management Sr. Manager, Accenture Cloud Native cloud providers—primarily the Hyper 3—continue their explosive growth, collectively launching thousands of new features and services every year. Meanwhile, niche providers of cloud management solutions are constantly on the lookout for gaps to fill in native providers’ services to make it easier for companies to control and optimize their cloud estates. So, the question for companies becomes: What role should each type of provider play in their cloud strategy? FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 32
INNOVATION BRINGS NEW CHALLENGES AND DECISIONS The fact is, as cloud use becomes even more pervasive, companies need more powerful tools to help them manage key elements of their cloud estate, such as governance, cost management, capacity planning, security and compliance, configuration management and others. And therein lies the challenge: Which tools should they use? Should they stick with those the native providers offer or go with ones offered by niche providers that specialize in specific areas? Or, should they consider a third option: an abstraction layer that allows them to use new tools and services without getting locked into a specific vendor? It’s a critical decision that must be made in light of what these providers offer now. And it’s not easy differentiating between true capabilities available today versus those on a roadmap. Take the native providers. No one denies their innovation engines or the sheer amount of money they plow into their businesses. And when they spot a problem area, they address it quickly. Security is a great example. In the early days of the public cloud, companies were rightly concerned about the security of their data, and their feeling that their own servers were much more secure was dampening cloud acceptance. Providers recognized this was a huge obstacle to their growth and attacked the security issue head on. FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 33
INTEROPERABILITY IS KEY FOR MULTI-CLOUD ESTATES And they can be very effective because of their laser focus. These providers are looking On the other hand, there are two big drawbacks to their innovation. One, they deeply at the Hyper 3’s services and continually identifying gaps that need to be filled. typically aren’t as robust or comprehensive as they need to be. And two, all of the They’re spotting potential problems and are upgrading their offerings accordingly. tools are exclusive to each cloud provider. That may be fine for a company that’s But niche vendors, too, have downsides. Their solutions aren’t offered as an dedicated to a single provider, but the arrangement is less than ideal for companies integrated service, so companies likely will have to integrate the solutions that use two or even all three of the Hyper 3—which is increasingly the case. Each of themselves and possibly integrate across all of the native providers if they’re running the Hyper 3 is bent on dominating the public cloud market, not interoperability. That multiple clouds. And there’s always the chance that the Hyper 3 will come out with makes it difficult for a company to create a seamless, multi-cloud environment. their own version of these solutions, rendering the third-party ones obsolete. Niche vendors offer very specific solutions that cover one or just a handful of the management issues mentioned. FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 34
CONSIDER A THIRD OPTION FORTUNATELY, THERE’S A THIRD OPTION: Cloud management platforms that operate as an abstraction layer and have all of the benefits of a robust, comprehensive solution without the drawback of being tied to a specific cloud provider. Such platforms, which use configuration and rules languages that are Hyper 3 agnostic, enable a company to manage its entire cloud estate, regardless of how many cloud providers it’s using. FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 35
TAKE BILLING, FOR EXAMPLE. Determining how much a company pays for its cloud infrastructure is difficult, even public cloud. That trend is likely to accelerate, as the Hyper 3 continue to roll out with just one provider. It’s exponentially more difficult if the company is using all new features and services that are irresistible to companies’ developers. Rather three, each of which has its own ways of describing its resources and charging for than try to rein in developers, CIOs need to give them the freedom to explore and services. An abstraction-layer billing engine, based on an open-source language, experiment—while maintaining control. Native cloud management consoles can can apply the company’s specific billing rules across all three providers, giving a help in some cases, but they have limitations. The same is true of niche offerings, consistent, definitive view of the cloud estate’s total costs. which can seem like easy fixes until the costs of customization and their inability to work in a true multi-cloud environment become clear. The same thing applies to security. Because it’s an abstraction layer, a cloud management platform can establish specific rules for how a company’s data privacy The reality is that, for the foreseeable policy gets interpreted and applied when the mechanisms and even the terms future, companies shouldn’t expect referring to those policies are different across providers. This enables a company to interoperability to be high on the consistently apply its security policy in all environments without having to wait for a Hyper 3’s agenda. vendor’s next release that promises support for an additional Hyper 3 provider. Until it is, an abstraction-layer approach to cloud management Another big advantage to cloud management platforms is that they run as a service—they already include the “plumbing” to accommodate operations across multiple cloud environments. Thus, they require no time-consuming, expensive makes sense for companies looking integration or customization to set up and use. to optimize their cloud estates while continually taking advantage of the The emergence of abstraction-layer cloud management platforms, and “cloud- best the Hyper 3 have to offer. agnostic” solutions such as Terraform, has come at an opportune time for companies that are increasingly having to manage a presence in more than one FORCE #6: NATIVE VS. NICHE COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 36
FORCE #7: SECURE FROM START By Jonathan Roz, Global Delivery & Operations Lead, Accenture Cloud Security is a major concern for the keepers of a company’s data. According to Accenture research, 79 percent of companies admit their organization is adopting new and emerging technologies faster than they can address related cybersecurity issues, and 80 percent said protecting their companies from weaknesses in third parties is increasingly difficult.6 And that concern remains as companies move an increasing amount of their business to the cloud. FORCE #7: SECURE FROM START COPYRIGHT © 2019 ACCENTURE. ALL RIGHTS RESERVED. ACCENTURE, AND ITS LOGO ARE TRADEMARKS OF ACCENTURE. PAGE 37
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